“We expect the spot USD-INR pair to trade in a range of 64.80- 65.20 today,” he added.

The dollar stood near a three-week high against a basket of currencies on Wednesday, after Federal Reserve chairman Jerome Powell’s upbeat views on the economy bolstered bets on further Fed interest rate hikes this year.

The dollar index, which measures the greenback against a basket of six major currencies, last stood at 90.414, after hitting a high near 90.50 on Tuesday, its strongest level in almost three weeks.

Dhawal Dalal of Edelweiss said, “Indian government bonds appear to have stabilised after the 10-year benchmark bond yield touched 7.80 percent last week. We expect government bonds to consolidate at current levels before charting their next course based on the developments in the local and global macro-economic landscape.”

“A weekly close below 7.60 percent may indicate a reversal in the current uptrend in yields. That said, we expect the 10-year benchmark bond yield to trade in a range of 7.65-7.75 percent in the near term,” he added.